Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
DAT Sector Enters "Downward Spiral" as mNAV Measure Collapses

DAT Sector Enters "Downward Spiral" as mNAV Measure Collapses

Bitget-RWA2025/09/27 20:24
By:Coin World

- NYDIG urges Bitcoin treasury firms to abandon misleading mNAV metric, citing systemic risks. - Market saturation and investor caution have eroded mNAV, triggering consolidation and stock declines. - Ethereum-based treasuries show resilience via staking yields, contrasting with BTC/ETH/SOL declines. - Industry experts warn of "death spiral" for smaller DATs as mNAVs remain depressed.

DAT Sector Enters

NYDIG has urged

treasury firms to stop relying on the market net asset value (mNAV) metric, arguing that it gives a false impression and heightens systemic dangers within the digital asset treasury (DAT) industry. According to the company’s analysis, mNAV—which measures a company’s enterprise value against its crypto reserves—has become an unreliable gauge of stability, especially as increased market competition and investor wariness compress the ratio. Greg Cipolaro, NYDIG’s global research head, pointed out that the shrinking difference between share prices and crypto assets has made the sector more fragile, with investor concerns over token unlocks, changes in corporate direction, and a lack of unique treasury approaches all contributing to the downturn.

Previously, mNAV was a major incentive for DATs to issue new shares and grow their crypto portfolios, but it has now suffered considerable decline. Standard Chartered Bank noted that several prominent DATs have fallen below the crucial mNAV level of 1.0, effectively stopping them from expanding their assets. This drop is largely due to market saturation, as

(formerly MicroStrategy)’s Bitcoin acquisition strategy inspired over 89 similar companies, many of which now struggle to remain sustainable. The bank cautioned that consolidation is unavoidable, with dominant players like Strategy and Bitmine expected to absorb weaker competitors trading at lower valuations.

The DAT industry’s dependence on mNAV has revealed deep-seated weaknesses. When mNAV is above 1.0, firms can raise funds at a premium to purchase more crypto, but once it falls below that point, the model becomes damaging. For example, Strategy Inc.’s mNAV dropped from more than 6.0x in 2021 to less than 2.0x by mid-2025, signaling waning investor trust and dilution issues. In contrast, Ethereum-focused treasuries have remained more stable thanks to staking rewards, which offer extra revenue. This difference highlights the value of yield-generating tactics for DAT sustainability.

NYDIG’s criticism of mNAV reflects wider industry worries. Data from Artemis Analytics shows a three-month slide in mNAVs for

, ETH, and SOL treasuries, hitting a low in September. This decline has led to steep share price drops, such as KindlyMD’s NAKA stock, which plunged 55% in one day and 96% since May. Peter Schiff, a well-known DAT skeptic, compared the model to “Ponzi schemes built on a pyramid,” using NAKA’s collapse as evidence of the risks. Meanwhile, MicroStrategy’s shrinking NAV has limited its Bitcoin buying, with its multiple falling from 1.75x in June to 1.24x by September.

The consequences for the DAT industry are significant. Standard Chartered forecasts that only a select few companies will maintain mNAV premiums by executing disciplined and creative strategies. NYDIG stresses that mNAV’s instability threatens lasting value, recommending a focus on increasing Bitcoin per share and strengthening capital structures. For instance, Strategy’s “preferred equity only” approach, which avoids debt maturities, aims to lower refinancing risks during turbulent periods. The company’s all-stock purchase of Semler Scientific, which brought in 5,816 Bitcoin, demonstrates a move toward consolidating assets and improving capital use.

Looking forward, the DAT sector is at a pivotal point. While larger firms with access to cheap capital and staking income are likely to lead, smaller companies may face a “death spiral” as mNAVs stay low. NYDIG’s recommendation to move away from mNAV highlights the importance of transparency and solid capital frameworks as the sector matures. As regulatory pressure and market doubt increase, the ability to combine crypto accumulation with operational strength will decide which DATs succeed in the changing environment.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

ICE Operations Cause Turmoil in Alabama Construction, Triggering Workforce Shortages and Economic Concerns

- ICE raids in Alabama detained 500+ construction workers, worsening labor shortages and delaying projects like Gulf Shores schools and Georgia Hyundai plants. - Industry leaders warn ICE enforcement acts as an "economic shock," raising costs and threatening 200,000 jobs in a $17.2B sector. - 90% of firms struggle to fill roles; 46% report raid impacts, with $84K+ penalties for contractors like Robby Robertson due to 50% crew attrition. - Builders demand legal pathways for skilled workers, citing 439K labo

Bitget-RWA2025/09/28 06:32
ICE Operations Cause Turmoil in Alabama Construction, Triggering Workforce Shortages and Economic Concerns

Investors Make Major Wagers on Alternative Coins as Ethereum Drives 2025 Rally

- - 2025 altcoin surge sees 40% of Q3 capital flowing into Ethereum-based projects like BullZilla, Pudgy Penguins, and Turbo via presales and staking incentives. - - BullZilla ($BZIL) raised $680K through 70% APY staking, using progressive pricing to attract 2,200+ holders with potential 1,000x returns if token hits $0.001. - - Pudgy Penguins leveraged 2.5M NFT community for meme coin expansion, while AI-driven Turbo accelerated presale adoption by 20% through automated branding. - - Ethereum's institution

Bitget-RWA2025/09/28 06:20
Investors Make Major Wagers on Alternative Coins as Ethereum Drives 2025 Rally

Institutional Shift Away from Ethereum ETFs Highlights Split Allegiances as Bitcoin Attracts New Investments

- Ethereum ETFs faced $796M outflows in late September 2025 as Fidelity, Grayscale, and BlackRock led redemptions amid 10% ETH price declines. - Single-day $251M withdrawals and ETF net assets at $27.52B highlighted institutional caution, contrasting Bitcoin ETFs' $283.7M inflows. - Analysts linked outflows to profit-taking and macro uncertainty, noting ETFs as "risk-asset plays" amid shifting investor preferences toward Bitcoin. - Despite short-term losses, Ethereum's $46.192B trading volumes and on-chain

Bitget-RWA2025/09/28 06:20
Institutional Shift Away from Ethereum ETFs Highlights Split Allegiances as Bitcoin Attracts New Investments

XRPL's EVM Sidechain Achieves $120 Million TVL Milestone in a Historic Week

- Ripple’s XRP Ledger (XRPL) is transforming via institutional adoption, tech upgrades, and partnerships after its 2025 SEC legal resolution. - The EVM sidechain launched in 2025 achieved $120M TVL within a week, enabling Ethereum-compatible smart contracts with XRPL’s speed and low costs. - Institutional collaborations with HSBC and Ondo Finance, plus five new stablecoins, expanded XRPL’s role in tokenizing real-world assets and global settlements. - Infrastructure upgrades, including a high-performance s

Bitget-RWA2025/09/28 06:20
XRPL's EVM Sidechain Achieves $120 Million TVL Milestone in a Historic Week